Private sector lender DCB Bank on Tuesday reported a 3% year-on-year (y-o-y) fall in net profit to Rs 41 crore for the three months to December 2015 owing to a jump in provisions and tax expenses. While its provisions rose 14% y-o-y to Rs 21 crore, its tax expenses more than tripled over the previous year to Rs 22 crore.
The bank’s net interest income (NII) – the difference between interest earned and interest expended – was up 32% y-o-y in Q3 FY16 to Rs 160 crore due to a 21% y-o-y rise in interest income.
The lender’s asset quality improved slightly in Q3 FY16 with its gross non-performing assets (NPAs) as a percentage of gross advances at 1.98%, down from 1.99% in the September quarter. Its net NPA ratio at 1.12% of net advances was a tad better than 1.16% it had reported in Q2 FY16.
Murali M Natrajan, MD and CEO, DCB Bank, said in the statement, “We are satisfied with our branch expansion initiative. We are making continuous efforts to improve branch performance.”
Its net interest margin was up 26 basis points (bps) on a y-o-y basis and stood at 3.96%. The bank also saw a growth of 22% y-o-y in total income to Rs 207 crore in Q3.